Selling Price Indices

jewels.p

Selling Price Index Sales Volume Index
Indices for year ended 30/11/06 180 70
Forecast Indices for year end 30/11/07 171 84

How do you calculate the new Sales Volume from that? I cant even find it in my book now (brain overload)

Rinske

Current sales volume is known I assume?

In which case it is current sales volume divided by current indices times forecast indices.

What it is, as you got a brain meltdown, your brain decided to switch off and celebrate the weekend, while you were trying to do this question, as this is one you know!

(You got the current sales, you know the index for it, so to get to the new sales figures you need to figure out how to cancel out the current index and relate it to the new index)

Does that help?

jewels.p

Rinske wrote: »

Current sales volume is known I assume?

In which case it is current sales volume divided by current indices times forecast indices.

What it is, as you got a brain meltdown, your brain decided to switch off and celebrate the weekend, while you were trying to do this question, as this is one you know!

(You got the current sales, you know the index for it, so to get to the new sales figures you need to figure out how to cancel out the current index and relate it to the new index)

Does that help?

Sure does Rinske! Thanks will deal with that next week when brain switches back on...................hopefully!

Enjoy your weekend

x

Rinske

Sorry, did sound a bit harsh on the brain there!

Anyways, while I was writing this one, my workplace annoyed me horribly again (oh the joy when I finally can give out that notice), but the brain thing really was nothing personal! It isn't much of an excuse and it wasn't meant in a bad way, but if I had written while all cheery, I would probably just have said that your brain wanted the weekend, just like mine!

Weekend now though! Home alone, pizza to go in the oven soon and a half full bottle of baileys for afters! (I don't usually drink, so that should be enough to get me drunk for tonight).